Deflationary Farming

Liquidity providers will be able to earn rewards, even while they’re sleeping. All rewards will be paid in the PRD token. All transactions that move PRD attract a small fee worth 0.5% of the total amount. This fee will go into two pools:

  • 90% shared for all farmers. - 10% burned directly.

    For example, suppose that PRD’s current price is $0.10 and there are 10 pools on PolkaRoad.

  • When a user swaps 1,000 USDT to PRD (on any exchange or DEX), in theory that user should receive about.

For another example, suppose that the system has an existing DOT-USDT pool with a current LP of 10,000 USDT and 1,000 DOT. Suppose a user has 2,000 USDT and wants to join in farming: the user would need to add 1,000 USDT and 100 DOT (bought with 1,000 USDT at the price of $10 per DOT, not including slippage) to the pool. At this point, this user's LP DOT-USDT share in the pool is 100 / (1,000 + 100) = 9.091%. As such, when 1,000 PRD is added to the pool as for rewards, this user would earn 90.91 claimable PRD.